NOF (4403) Q1 2027 earnings summary

Executive summary

• Net sales for the three months ended June 30, 2026, rose 23.1% year-over-year to ¥69,007 million, driven by strong performance in Functional Chemicals and Explosives & Propulsion, despite a challenging global environment.

• Operating profit declined 9.7% year-over-year to ¥10,695 million, and profit attributable to owners of parent fell 12.1% to ¥7,571 million, reflecting higher costs and segment-specific challenges.

• The company is executing its 2028 Mid-Term Management Plan, focusing on business expansion, new technologies, productivity, safety, and CSR.

Financial highlights

• Net sales: ¥69,007 million (+23.1% YoY); Operating profit: ¥10,695 million (−9.7% YoY); Ordinary profit: ¥11,505 million (−6.3% YoY); Profit attributable to owners of parent: ¥7,571 million (−12.1% YoY).

• Basic earnings per share: ¥33.53 (vs. ¥37.00 last year).

• Comprehensive income: ¥10,562 million (vs. ¥11,368 million last year).

• Total assets: ¥382,306 million (down ¥16,861 million from March 31, 2026); Net assets: ¥294,345 million.

Outlook and guidance

• Full-year forecast (ending March 31, 2027): Net sales ¥319,000 million (+23.7% YoY), Operating profit ¥50,000 million (+5.5% YoY), Profit attributable to owners of parent ¥39,000 million (−3.8% YoY), EPS ¥169.60.

• No change to previously announced forecasts; continued monitoring of geopolitical and raw material risks.

• Dividend forecast for FY2027: ¥70 per share (up from ¥61 in FY2026).